Accel Partners invests USD 40 million in WorldRemit

WorldRemit’s online platform enables migrants and expats to send remittance payments to families and friends abroad. The investment will support WorldRemit’s expansion into new geographies and the development of additional products and services.

In 2012, remittance payments reached USD 519 billion, mostly via traditional players such as Western Union and MoneyGram, as well as a plethora of smaller and informal operators, according to The World Bank. The majority of the payments are still conducted via a network of physical locations. These traditional operators also create compliance risks associated with acceptance of cash at corner shops that leaves no audit trail.

WorldRemit, with its online-only, cashless business model, offers a remittance alternative to traditional money transfer operators. Customers can send funds from 35 countries to families and friends in over 100 destinations. Senders can use WorldRemit’s online platform, also accessible via mobile phones and tablets, to make payments by debit or credit card, or via bank transfer. Recipients can receive funds via bank deposit, direct transfer to mobile wallets, cash pickup or delivery, as well as airtime top-up for their mobile phones.

Founded in 2009, WorldRemit has partnered with international banks, mobile operator hubs and mobile money transfer networks including M-PESA, as well as an array of local money transfer networks. The company currently enables more than 1.3 million annual remittance transactions with the help of over 50 employees and expects to continue its growth in 2014, expanding its staff to 200 employees by the end of the respective year.